Welcome!

Cloud Expo Authors: Victoria Livschitz, Jim Kaskade, Nikita Ivanov, Pat Romanski, Amy Lindberg

News Feed Item

Demandware Announces Third Quarter 2012 Financial Results

Demandware®, Inc. (NYSE: DWRE), a leader in on-demand ecommerce, today announced financial results for its third quarter ended September 30, 2012.

Third Quarter Highlights

  • Total revenue for the third quarter was $18.7 million, a 39% year over year increase from $13.5 million in the third quarter of 2011
  • Subscription revenue for the third quarter was $16.3 million, a 45% year over year increase from $11.2 million in the third quarter of 2011
  • 137 live customers and 517 live sites at September 30, 2012
  • Order Center, Demandware’s order management application, implemented in production environment for an early adopter customer

“Our strong subscription revenue growth in the third quarter is further evidence that the Demandware Commerce platform empowers our customers to grow faster, innovate quicker and launch new eCommerce sites more rapidly,” stated Tom Ebling, Chief Executive Officer of Demandware. “We believe that our robust cloud-based eCommerce solution is the best alternative to meet the rigorous requirements of today’s fastest growing retailers and branded manufacturers. Our third quarter financial results demonstrate that our solution is helping customers meet these requirements enabling them to grow their eCommerce businesses. ”

  • Demandware signed significant new customers during the quarter including American Golf, Black Diamond, and Sunbeam Products (Jarden Consumer Solutions).
  • Browns Shoes, Oreck, Gianni Versace, Pier 1 Imports, Tamaris Shoes, and GORE BIKE WEAR® and GORE RUNNING WEAR® Apparel brands from W.L. Gore & Associates, Inc. were among the leading companies that launched new initial sites on the Demandware Commerce platform during the third quarter.
  • Existing customers like Butlers GmbH, Clarins, L’Oreal, New Balance, Reitmans, and Summit Sports launched new ecommerce sites for new geographies or for new brands on the Demandware Commerce platform.

“During the quarter, we continued to invest in expanding our global sales team, enhancing our brand awareness, and innovating our technology platform,” stated Scott Dussault, Demandware Chief Financial Officer. “We are confident that these investments will enable us to further deepen our penetration in the large, robust market for enterprise-class, cloud based eCommerce solutions.”

Demandware’s loss from operations for the third quarter of 2012 was $3.6 million, as compared to a loss from operations of $1.5 million for the same period in 2011, reflecting the company's increased investments to support the growth of its business.

Demandware’s GAAP net loss for the third quarter of 2012 was $3.5 million, or $(0.12) per share attributable to common stockholders, as compared to a net loss of $2.1 million, or $(0.80) per share attributable to common stockholders, for the third quarter of 2011.

Non-GAAP net loss for the third quarter of 2012 was $1.3 million, or $(0.04) per share, as compared to non-GAAP net loss of $1.8 million, or $(0.42) per share, for the third quarter of 2011. (1)

(1)Non-GAAP net loss excludes expenses related to stock-based compensation. Non-GAAP net loss per share excludes expenses related to stock-based compensation and the accretion of redeemable preferred stock.

Quarterly Conference Call

To access the call at 8:30 a.m. today, please dial (866) 783-2140 in the U.S. or +1 (857) 350-1599 internationally. The Passcode for the call is: 23204485. A live webcast of the call will also be available on the investor relations section of the company’s website. An audio replay will be available for one week following the conclusion of the call through November 13, 2012. The replay number is (888) 286-8010 in the U.S. or +1 (617) 801-6888 internationally. The Passcode for the replay is: 17321753. The replay will also be available as a webcast on Demandware’s Investor Relations website.

About Demandware

Demandware is a leading provider of software-as-a-service (SaaS) ecommerce solutions that enable companies to easily design, implement and manage their own customized ecommerce sites, including websites, mobile applications and other digital storefronts. Customers use our highly scalable and integrated Demandware Commerce platform to more easily launch and manage multiple ecommerce sites, initiate marketing campaigns more quickly, and improve ecommerce traffic. For more information about Demandware, visit www.demandware.com, call 888-553-9216 or email [email protected].

Demandware is a registered trademark of Demandware, Inc.

Forward-looking Statements

This release contains forward-looking statements, including statements regarding Demandware's future financial performance, market growth, the demand for Demandware's solutions, and general business conditions. Any forward-looking statements contained in this press release are based upon Demandware's historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Demandware's expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Demandware disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, our ability to attract new customers; the extent to which customers renew their contracts for our solution; the seasonality of our business; our ability to manage our growth; the continued growth of the market for on-demand software; the timing and success of solutions offered by our competitors; unpredictable macro-economic conditions; the loss of any of our key employees; the length of the sales and implementation cycles for our solutions; increased demands on our infrastructure and costs associated with operating as a public company; failure to protect our intellectual property; changes in current tax or accounting rules; and other risk and uncertainties. Further information on potential factors that could affect actual results is included in Demandware’s reports filed with the SEC.

Non-GAAP Financial Measures

Demandware has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP net loss and non-GAAP net loss per share. Demandware uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Demandware’s ongoing operational performance. Demandware believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial measures with other companies in Demandware's industry, many of which present similar non-GAAP financial measures to investors. Non-GAAP net loss and non-GAAP net loss per share exclude expenses related to stock-based compensation and the accretion of redeemable preferred. These amounts are often difficult to predict and often excluded by other companies to help investors understand the operational performance of their business. Non-GAAP financial measures that the Company uses may differ from measures that other companies may use. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables included as part of this press release.

 
 
Demandware, Inc.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
       
September 30, 2012 December 31, 2011
ASSETS
 
Current assets:
Cash and cash equivalents $ 71,886 $ 14,939
Short-term investments 37,021 -
Accounts receivable — net of allowance of doubtful accounts and credit memos 15,634 16,930
Prepaid expenses and other current assets   3,691     1,878  
Total current assets 128,232 33,747
 
PROPERTY AND EQUIPMENT — Net 8,925 6,404
OTHER ASSETS   1,010     2,735  
Total assets $ 138,167   $ 42,886  
 
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
 
Current Liabilities:
Current portion of notes payable $ 3,403 $ 2,098
Accounts payable 2,650 1,884
Accrued expenses 8,538 7,023
Deferred revenue 17,322 13,960
Deferred rent   118     57  
Total current liabilities   32,031     25,022  
 
Long-term liabilities:
Deferred revenue 13,393 12,210
Notes payable 2,897 1,882
Deferred rent 1,004 682
Preferred stock warrant liability   -     107  
Total liabilities   49,325     39,903  
 
Series A redeemable convertible preferred stock - 14,976
Series B redeemable convertible preferred stock - 18,158
Series C redeemable convertible preferred stock - 27,884
Series D redeemable convertible preferred stock   -     26,585  
Total redeemable convertible preferred stock   -     87,603  
 
Stockholders' equity (deficit):
Common stock 296 45
Additional paid-in capital 168,506 -
Accumulated other comprehensive loss (48 ) (53 )
Accumulated deficit   (79,912 )   (84,612 )
Total stockholders’ equity (deficit)   88,842     (84,620 )
 
Total Liabilities, Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) $ 138,167   $ 42,886  
 
 

Demandware, Inc.
Condensed Consolidated Statements of Operations
(unaudited; in thousands, except per share data)
             
Three Months Ended Nine Months Ended
September 30, September 30,

2012

2011

2012

2011

Revenue:
Subscription $ 16,250 $ 11,220 $ 45,061 $ 30,902
Services   2,456     2,255     8,095     7,029  
Total revenue   18,706     13,475     53,156     37,931  
 
Cost of revenue:
Subscription 3,501 2,473 9,407 6,842
Services   2,990     2,958     8,598     7,655  
Total cost of revenue   6,491     5,431     18,005     14,497  
 
Gross profit 12,215 8,044 35,151 23,434
 
Operating expenses:
Sales and marketing 8,496 5,082 24,402 14,385
Research and development 3,935 2,934 11,490 8,345
General and administrative   3,350     1,526     9,751     4,498  
Total operating expenses   15,781     9,542     45,643     27,228  
 
Loss from operations   (3,566 )   (1,498 )   (10,492 )   (3,794 )
 
Other income (expense) :
Interest income 50 2 97 7
Interest expense (109 ) (79 ) (263 ) (198 )
Other income (expense)   193     (391 )   (455 )   178  
 
Other income (expense) — net   134     (468 )   (621 )   (13 )
Loss before income taxes (3,432 ) (1,966 ) (11,113 ) (3,807 )
Income Tax Expense   39     125     235     180  
 
Net Loss $ (3,471 ) $ (2,091 ) $ (11,348 ) $ (3,987 )
Accretion of redeemable convertible preferred stock   -     (1,318 )   (1,172 )   (3,956 )
 
Net loss attributable to common stockholders $ (3,471 ) $ (3,409 ) $ (12,520 ) $ (7,943 )
 
Net loss per share attributable to common stockholders,
basic and diluted $ (0.12 ) $ (0.80 ) $ (0.57 ) $ (2.20 )
Weighted average common shares outstanding,
basic and diluted   29,200     4,273     22,158     3,617  
 
 

Demandware, Inc.
Stock Based Compensation Expense
(unaudited, in thousands)
             
 
Three Months Ended Nine Months Ended
September 30, September 30,

2012

2011

2012

2011

 
Cost of subscription revenue $ 57 $ 5 $ 119 $ 16
Cost of services revenue 233 22 492 71
Sales and marketing 559 65 1,236 175
Research and development 484 33

 

1,035 455
General and administration   856   158   1,920   426
 
$ 2,189 $ 283 $ 4,802 $ 1,143
 
 

Demandware, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
           
Three Months Ended Nine Months Ended
September 30, September 30,

2012

2011

2012

2011

 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (3,471 ) $ (2,091 ) $ (11,348 ) $ (3,987 )
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization 892 719 2,432 2,119
(Gain) loss on disposal of property and equipment (3 ) - (3 ) 86
Re-measurement of preferred stock warrant liability - (2 ) 426 (5 )
Stock-based compensation 2,189 283 4,802 1,143
Deferred rent expense 144 44 382 311
Other non-cash reconciling items 65 10 93 94
Changes in operating assets and liabilities:
Accounts receivable (1,039 ) (1,112 ) 1,296 (1,087 )
Prepaid expenses and other current assets (385 ) (52 ) (1,259 ) (271 )
Other long-term assets 78 (89 ) 182 (89 )
Accounts payable (134 ) 325 733 (63 )
Accrued expenses 1,167 1,174 1,442 2,108
Deferred revenue   134     378     4,545     (211 )
Net cash (used in) provided by operating activities   (363 )   (413 )   3,723     148  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (503 ) (304 ) (3,659 ) (3,239 )
Purchase of marketable securities (21,258 ) - (46,577 ) -
Sale and maturity of marketable securities 9,499 - 9,499 -
Proceeds from sale of property and equipment - - - 26
(Increase) decrease in restricted cash and other assets   (3 )   2     (168 )   (41 )
 
Net cash used in investing activities   (12,265 )   (302 )   (40,905 )   (3,254 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from initial public offering, net of underwriting discounts and commissions - - 94,116 -
Proceeds from exercise of stock options 627 356 1,030 1,568
Deferred offering costs (96 ) (1,089 ) (1,561 ) (1,089 )
Proceeds from issuance of notes payable 157 201 2,757 2,570
Payments of note payable   (954 )   (568 )   (2,219 )   (1,316 )
 
Net cash (used in) provided by financing activities   (266 )   (1,100 )   94,123     1,733  
 
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS   43     (104 )   6     (2 )
 
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (12,851 ) (1,919 ) 56,947 (1,375 )
 
CASH AND CASH EQUIVALENTS — Beginning of period   84,737     17,692     14,939     17,148  
 
CASH AND CASH EQUIVALENTS — End of period $ 71,886   $ 15,773   $ 71,886   $ 15,773  
 
 

Demandware, Inc.
Calculation of Non-GAAP Operating Loss, Non-GAAP Net Loss, and Non-GAAP Net Loss Per Share
(unaudited; in thousands, except per share data)
           
Three Months Ended Nine Months Ended
September 30, September 30,

2012

2011

2012

2011

Operating loss:
GAAP operating loss $ (3,566 ) $ (1,498 ) $ (10,492 ) $ (3,794 )
Add back:
Stock-based compensation   2,189     283     4,802     1,143  
Total non-GAAP operating loss (1,377 ) (1,215 ) (5,690 ) (2,651 )
 
Net loss:
GAAP net loss $ (3,471 ) $ (2,091 ) $ (11,348 ) $ (3,987 )
Add back:
Stock-based compensation   2,189     283     4,802     1,143  
Total non-GAAP net loss (1,282 ) (1,808 ) (6,546 ) (2,844 )
 
Non-GAAP net loss per share:
Basic & Diluted $ (0.04 ) $ (0.42 ) $ (0.30 ) $ (0.79 )

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the ...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big D...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective ...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using ...
"SAP had made a big transition into the cloud as we believe it has significant value for our customers, drives innovation and is easy to consume. When you look at the SAP portfolio, SAP HANA is the underlying platform and it powers all of our platforms and all of our analytics," explained Thorsten Leiduck, VP ISVs & Digital Commerce at SAP, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Ar...
The term culture has had a polarizing effect among DevOps supporters. Some propose that culture change is critical for success with DevOps, but are remiss to define culture. Some talk about a DevOps culture but then reference activities that could lead to culture change and there are those that talk about culture change as a set of behaviors that need to be adopted by those in IT. There is no question that businesses successful in adopting a DevOps mindset have seen departmental culture change, ...
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
SYS-CON Media announced today that Skytap blog on "DevOps Journal" exceeded 84,000 story reads. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Noel Wurst is the managing content editor at Skytap. Skytap provides SaaS-based dev/test environments to the enterprise. Skytap solution removes the inefficiencies and constraints that comp...
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, a...
Fundamentally, SDN is still mostly about network plumbing. While plumbing may be useful to tinker with, what you can do with your plumbing is far more intriguing. A rigid interpretation of SDN confines it to Layers 2 and 3, and that's reasonable. But SDN opens opportunities for novel constructions in Layers 4 to 7 that solve real operational problems in data centers. "Data center," in fact, might become anachronistic - data is everywhere, constantly on the move, seemingly always overflowing. Net...
"ElasticBox is an enterprise company that makes it very easy for developers and IT ops to collaborate to develop, build and deploy applications on any cloud - private, public or hybrid," stated Monish Sharma, VP of Customer Success at ElasticBox, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrateg...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happe...